Yahoo Finance Square's (SQ) Q2 Earnings to Gain From Portfolio Strength
Square, Inc. SQ is slated to report second-quarter 2020 results on Aug 5.
The company’s robust financial services portfolio is likely to have contributed to the second-quarter performance.
Moreover, its friendly ecosystem that enables sellers to combine software, hardware and payments services in order to accept payment from customers might have enabled it in maintaining solid momentum across sellers.
Click here to know how the company’s overall second-quarter performance is likely to be.
Square, Inc. Revenue (TTM)
Square, Inc. revenue-ttm | Square, Inc. Quote
Portfolio Strength: A Key Catalyst
Square’s portfolio strength is anticipated to get reflected in the second-quarter results.
In the to-be-reported quarter, the company made on-demand delivery for Square Online Store available, which might have delivered enhanced experience to sellers on its platform.
Further, the company’s expanding omni-channel offerings, which aid sellers in managing their orders from the point of sale and eliminate manual aggregation of online and in-personorders, are expected to have strengthened seller base in the second quarter.
Moreover, Square’s strong product lines such as Square Invoices, Square Terminal, Instant Deposits, Cash Card, Square Register, Square Reader, Square Stand, Square for Restaurant and API platforms may get reflected in the second-quarter revenues.
Additionally, product integrations are likely to have benefited Square’s performance in the quarter to be reported.
Improving business loan processing via Square Capital may have contributed to the to-e-reported quarter’s performance. Additionally, growing adoption of Cash App in the bitcoin space is likely to have aided growth in Square’s bitcoin revenues.
All the abovementioned products are likely to get reflected in the company’s second-quarter gross payment volume (GPV).
However, shelter-in-place restrictions and social distancing protocol led by coronavirus pandemic has caused disruptions in the businesses of several sellers, especially small ones. This, in turn, is expected to have negatively impacted Square’s GPV in the quarter under review.
The Zacks Consensus Estimate for second-quarter GPV is pegged at $19.2 billion, which suggests a decline of 28.2% from the year-ago quarter.
Zacks Rank & Other Stocks to Consider
Currently, Square carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Dropbox DBX, Asure Software, Inc. ASUR and Analog Devices ADI. While both Dropbox and Asure Software sport a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate of Dropbox, Asure Software, and Analog Devices is pegged at 32.51%, 14% and 13.33%, respectively.
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